You may remember our friends from AMC, the movie channel with the CEO without pantswho bent over all the way in on the same stock thing. Perhaps hordes of enthusiastic retail investors saved AMC from crippling debt. AMC now hopes to mine them again to create more shares of the company.
This trimester, AMC announced a dividend for shareholders: the shares of AMC Preferred Equity, which will be traded as APE on the New York Stock Exchange. One of these babies will exist for every common stock and can be converted into common stock if the company and investors vote for it to happen.
That “if” is a bit sticky though. You see, AMC wanted to sell more stock and got shot down by investors. Maybe those investors didn’t want to be further diluted — AMC sold a lot of stock during the pandemic. Maybe something else was at play. But APE, the solution, isn’t just a good marketing ploy to grab retail’s attention. It’s a tailspin around investors who voted against more stocks. After giving about 5 million APE shares to investors, AMC can sell 4.5 billion larger market units, The Wall Street Journal reports.
The news fell after the Stock Exchange. Shares of AMC closed at $18.66 today, and after market shares fell nearly 8% to $17.16 as of 5 p.m. ET, suggesting investors aren’t really excited about the plan. Or maybe they just didn’t like company profit figuresalso posted today: AMC’s revenue has not recovered from the pandemic.